Ethan Allen (ETD) AI Stock Analysis

• Market Cap: $607.66M
• Dividend Yield: 7.06%
• Average Volume (3M): 235.85K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.73
• Revenue Growth: -4.61%
• EPS Growth: -25.66%
• Country: US
• Employees: 3,294
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.43
• Shares Outstanding: 25,446,339
• 10 Day Avg. Volume: 171,927
• 30 Day Avg. Volume: 235,853
• PEG Ratio: -0.71
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 14.16
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 1.89
• Enterprise Value/Ebitda: 8.29
• 1Y Price Target: $30.00
• Price Target Upside: 8.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $26.00 ▼(-5.66% Downside)

Ethan Allen's overall stock score reflects a solid financial foundation and attractive valuation, but is tempered by bearish technical indicators and mixed earnings call results. The company's strong dividend yield and gross margins are positive, but declining revenue and profitability, along with market challenges, pose risks.

Ethan Allen Business Overview & Revenue Model

Company Description

Ethan Allen (ETD) is a leading American furniture and home décor retailer known for its high-quality, handcrafted products. The company operates in the home furnishings sector, offering a diverse range of products including upholstered furniture, case goods, and home accessories. With a strong emphasis on design and craftsmanship, Ethan Allen provides customers with customizable options and a full-service experience through its network of design centers and an e-commerce platform.

How the Company Makes Money

Ethan Allen generates revenue primarily through the sale of furniture and home décor products, both through its retail showrooms and online sales. The company employs a direct-to-consumer sales model, which allows it to capture a higher margin by selling its products without the need for third-party retailers. Key revenue streams include sales of custom and ready-to-assemble furniture, as well as design services offered to customers. Additionally, Ethan Allen benefits from strategic partnerships with designers and industry influencers that help enhance its brand visibility and attract a broader customer base. The company's focus on high-quality, American-made products also appeals to a market segment willing to pay a premium for craftsmanship and sustainability.

Ethan Allen Financial Statement Overview

Summary

Ethan Allen demonstrates solid financial health with strong margins and a stable balance sheet. Despite a decline in revenue and free cash flow, the company maintains operational efficiency and financial stability. The low leverage and strong equity position provide a buffer against economic fluctuations, though future growth strategies should address revenue and cash flow challenges.

Income Statement

Ethan Allen's income statement shows a strong gross profit margin of approximately 60.5% for the latest year, indicating efficient production and pricing strategies. However, the net profit margin has decreased to 8.4% from 9.9% the previous year, reflecting some pressure on profitability. Revenue has declined by 1.3% year-over-year, which is a concern for growth. Despite this, the company maintains a solid EBIT margin of 11.3%, suggesting operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.26, indicating conservative leverage and financial stability. The return on equity is 10.7%, showing effective use of equity to generate profits. The equity ratio stands at 65.4%, reflecting a strong equity base relative to total assets, which enhances financial resilience.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 2.5%, which could impact future investments. However, the operating cash flow to net income ratio is healthy at 1.2, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 0.82, suggesting that a significant portion of earnings is converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	614.65M	614.65M	646.22M	791.38M	817.76M	685.17M
Gross Profit	372.12M	372.12M	393.06M	480.37M	484.71M	393.11M
EBITDA	84.79M	84.79M	93.87M	149.09M	154.31M	93.67M
Net Income	51.60M	51.60M	63.82M	105.81M	103.28M	60.01M
Balance Sheet
Total Assets	737.10M	737.10M	744.92M	745.45M	719.89M	683.25M
Cash, Cash Equivalents and Short-Term Investments	136.13M	136.13M	161.03M	172.71M	121.12M	104.60M
Total Debt	123.67M	124.36M	129.28M	130.35M	115.21M	125.31M
Total Liabilities	254.83M	254.83M	262.00M	274.45M	312.57M	331.83M
Stockholders Equity	482.27M	482.36M	482.98M	471.03M	407.35M	351.44M
Cash Flow
Free Cash Flow	52.34M	50.43M	70.59M	86.78M	55.97M	117.88M
Operating Cash Flow	61.70M	61.70M	80.19M	100.66M	69.36M	129.91M
Investing Cash Flow	-2.36M	-2.36M	-19.99M	-101.52M	-13.97M	-7.12M
Financing Cash Flow	-52.60M	-52.60M	-52.33M	-47.59M	-49.00M	-90.99M

Ethan Allen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETD, the sentiment is Negative. The current price of 27.56 is above the 20-day moving average (MA) of 26.90, below the 50-day MA of 28.31, and below the 200-day MA of 27.61, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 23.17 is Positive, neither overbought nor oversold. The STOCH value of 4.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETD.

Ethan Allen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETD	66 Neutral	$607.66M	12.93	9.96%	7.06%	-4.61%	-25.66%
BSET	66 Neutral	$127.85M	16.48	4.70%	5.42%	-2.74%	―
LZB	64 Neutral	$1.30B	14.47	9.09%	2.79%	2.18%	-22.35%
AMWD	64 Neutral	$929.65M	11.39	9.21%	―	-8.56%	-17.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	55 Neutral	$1.05B	-61.26	-1.18%	4.39%	5.37%	-127.27%
HOFT	42 Neutral	$97.72M	-7.43	-6.33%	10.12%	-6.46%	-1110.82%

Ethan Allen Corporate Events

Ethan Allen Interiors’ Mixed Earnings Call: Growth Amid Challenges

Ethan Allen Interiors’ recent earnings call presented a mixed performance, reflecting both strengths and challenges. The company demonstrated strong financial stability, evidenced by growth in retail orders, high gross margins, and increased marketing efforts. However, it also faced significant challenges, including decreased wholesale orders, impacts from government sales, reduced traffic, and tariff effects.

Ethan Allen Interiors Reports Strong Q1 Performance

Ethan Allen Interiors Inc., a prominent player in the premium furniture retail sector, is renowned for its interior design services and high-quality, handcrafted furniture, primarily manufactured in North America. In its fiscal 2026 first-quarter earnings report, Ethan Allen highlighted positive demand and strong gross margins, despite facing macroeconomic challenges. The company reported consolidated net sales of $147.0 million, a gross margin of 61.4%, and adjusted diluted EPS of $0.43. Retail segment written orders increased by 5.2%, although wholesale segment orders declined by 7.1% due to reduced U.S. government business. Ethan Allen’s strategic focus remains on talent, service, marketing, technology, and social responsibility, with new design centers opening in Colorado, Toronto, and Houston. The company maintains a robust financial position with $193.7 million in cash and investments, no outstanding debt, and a continued commitment to shareholder returns through dividends. Looking ahead, Ethan Allen remains cautiously optimistic about its future, leveraging its vertical integration and strong brand reputation to navigate current economic challenges.

Ethan Allen Interiors Faces Revenue Challenges Amid U.S. Government Spending Cuts

Ethan Allen Interiors faces potential financial risk due to U.S. government initiatives aimed at reducing spending, which could impact their revenue from government contracts. With 6% of their consolidated net sales in fiscal 2025 coming from government contracts, changes in budgetary priorities and the establishment of the Department of Government Efficiency (DOGE) could lead to reduced demand for their products. The executive order by President Trump and subsequent directives to review government spending for waste and fraud may alter the way contracts are managed, posing a challenge to Ethan Allen’s financial stability. As the U.S. government seeks greater efficiency, Ethan Allen may experience decreased revenues and a need to adapt to new contracting processes.

Ethan Allen Interiors: Navigating Challenges with Strong Results

Ethan Allen Interiors recently held its earnings call, revealing a company skillfully navigating a challenging market landscape. The sentiment was largely positive, driven by strong financial results and operational efficiencies. Despite concerns over decreased wholesale orders and promotional impacts on margins, the company’s robust balance sheet, improved retail orders, and consistent dividend payments paint an optimistic picture for the future.